CRAZY ROLLER COASTER STORY

[Jason Malabute]

So at the end of the 2016 year I promised myself that I would stop running away from my fears and get started on my real  estate journey.

I read books, watched webinars, podcasts, and signed up for BP Pro. I told my boss (I work for a CPA firm) of my plans and told her to get me in touch with the right people. She did. I started to research potential markets. I also started practicing how to analyze properties.

The first time I completed my application the broker didn't even process it even if I had a big money down ($200k) because my monthly income was not enough to support the loan. In the past I would have given up here and went back to "finding a higher paying job". This time it is different. I am determined because I realized that real estate is my purpose in life. Moreover, all I could think of was the quote in Rich Dad Poor Dad where he says "you get rich from building financial intelligence, and you build financial intelligence by solving financial problems. The bigger the financial problem that you solve the financial intelligence you build." So through research and posting on BP I learned that you can use 75% of the income from the second unit to get pre approved.

So I relayed this information to the broker. He said that this will help but is still not enough. So to solve this problem I talked my mom into being a co-borrower and proceeded with the application process. A few days later my broker told me that he met a lender that is a better fit for me and encouraged me to apply with new lender. To make the VERY long story short I got pre-approved later on that night for $647k with $200k down. I was on top of the world.

The next day after work the lender emailed my broker and told him that there was an error and that they are actually just pre approving me for $447k with a $200k down. That is a $200k loan decrease!!!!! In a market like LA its going to be more difficult to find a duplex or triplex for that amount.

Furthermore, I found 2 duplexes in my area for less then $600k (1 a month ago and 1 a few days ago) on Zillow . However, the agent is claiming that both properties are actually listed at a over $1m. This makes no sense to me. How can the listing be that much different from price on Zillow? Also isn't the price of properties supposed to go down the longer they are on the market (not go up)? 

Has this happen to anyone else?

Lastly where in LA do you guys think I should look at for properties under $600k that will still CF? We are considering neighboring cites to my desired sub markets.

I REFUSE TO GIVEUP. 

Thank you.    

[Ben Leybovich]

Hah Jason - that comment immediately above is from my wife, @Patrisha Leybovich. Something to note about her - she is much prettier, and much nicer than I...

That said, Jason - if you can, on BiggerPockets none less, utter the words of juxtaposition of Zillo valuation to LP to reality, and be for even 1 second confused about anything at all, this serves as empirical evidence of your relative stupidity in the subject matter. 

Please, before you get into trouble, stop looking at property. You need to stop "trying". You need to study, and forget all else for about 6 months!

Good luck, man.